I guess we'll see if Europe decides to give the Greek banks more money tonight ^_^
I wouldn't count on that. If the IMF or ECB back down on what they had proposed, then no one is every going to take them seriously again. I can see the ECB extending some emergency liquidity to greek banks, but it's not going to be either easy, fast or w/o stipulations.
There really is no mechanism to kick any country out of EU or the Euro. You can leave yourself but not really set up to be able to kick anyone out. The common theme seems to be that voting NO was a vote to leave but the ballot certainly did not say that.
Well, there was no mechanism for bailing countries out either. In fact, the rules that govern the EU specifically prohibit that. But when you're balls are to the wall, you find a way around the rules. Unfortunately for Greece, the EU's balls are feeling pretty loose about now. They obviously have no problem with Greece slitting its own throat.
Cost competitive in what? What goods is Greece going to become a powerhouse exporter of?
You don't necessarily have to export anything. You just need to have people want to exchange their currency for yours. Tourism can do that. Hell, depending on what the exchange rate ends up being for Euro/Drachma, Greece could be a screaming deal for Europeans who want a holiday. I don't know the figures but I'm pretty sure that's how Spain gets a lot of money. For people in the UK and Northern Europe, Spain is like the Caribbean for Americans.